Cash out Refi. vs. Line of Credit

[James Pignataro]

I am trying to decide on the best way to leverage the equity that I have in my two family home.  The two options are cash out refinance and commercial line of credit.  The cash out refinance will be more expense to complete because it will be a full set of closing costs associated with the new loan.  The benefit I see to the cash out refi is you simply have all your equity or however much you choose (up to the lenders limit) as cash in the bank, and it seems cleaner from a transactional perspective.  

The commercial line of credit seems like a great product as well to pull on when you need it however to fund a whole down payment of say 75K there are significant interest costs associated with it.  And when the interest only payments kick in after the first month what is the best plan to pay down the actual principle balance?  Does anyone have experience with either of these products in the Worcester, Ma market?  I would be interested to hear your thoughts and recommendations.